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1 | AN ACT concerning sports betting.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Sports | ||||||||||||||||||||||||||||
5 | Betting Consumer Protection Act. | ||||||||||||||||||||||||||||
6 | Section 5. Legislative intent. | ||||||||||||||||||||||||||||
7 | The General Assembly hereby finds and declares that: | ||||||||||||||||||||||||||||
8 | (1) Sports betting is currently illegal in the United | ||||||||||||||||||||||||||||
9 | States under federal law, but that may be subject to change | ||||||||||||||||||||||||||||
10 | in 2018 due to court action. In 1992, the United States | ||||||||||||||||||||||||||||
11 | Congress passed the Professional and Amateur Sports | ||||||||||||||||||||||||||||
12 | Protection Act that made sports wagering illegal in all | ||||||||||||||||||||||||||||
13 | states except the following 4 states that were | ||||||||||||||||||||||||||||
14 | grandfathered because they had laws permitting sports | ||||||||||||||||||||||||||||
15 | wagering at that time: Oregon, Delaware, Montana, and | ||||||||||||||||||||||||||||
16 | Nevada. On December 4, 2017, the United States Supreme | ||||||||||||||||||||||||||||
17 | Court heard oral arguments in the case of Christie vs. the | ||||||||||||||||||||||||||||
18 | National Collegiate Athletic Association. The State of New | ||||||||||||||||||||||||||||
19 | Jersey filed the case to question the constitutionality of | ||||||||||||||||||||||||||||
20 | the federal law. The Court will likely issue its opinion in | ||||||||||||||||||||||||||||
21 | 2018. If the Court decides the federal law is | ||||||||||||||||||||||||||||
22 | unconstitutional, sports betting companies will likely | ||||||||||||||||||||||||||||
23 | rush to market with online and brick and mortar sports |
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1 | betting products to capture a piece of the presently | ||||||
2 | illegal sports betting market in the United States. | ||||||
3 | (2) There are estimates that Americans spend | ||||||
4 | $400,000,000,000 annually on illegal sports betting. | ||||||
5 | Industry experts estimate that a licensed sports betting | ||||||
6 | market in the United States will have revenues of between | ||||||
7 | $175,000,000,000 and $225,000,000,000 annually. Illinois, | ||||||
8 | by population, is roughly 4% of the United States market. | ||||||
9 | If sports betting is declared legal by the United States | ||||||
10 | Supreme Court, Illinoisans could be betting between | ||||||
11 | $7,000,000,000 and $16,000,000,000 annually with no | ||||||
12 | regulation of the industry and no protections for Illinois | ||||||
13 | consumers.
The Criminal Code of 2012 does include certain | ||||||
14 | prohibitions on gambling, but does not specifically | ||||||
15 | prohibit sports betting. Because the effectiveness of the | ||||||
16 | Criminal Code of 2012 is in question and because the | ||||||
17 | illegal sports betting market is already operating in this | ||||||
18 | State, and in light of possible action by the United States | ||||||
19 | Supreme Court, it should be the intent of the General | ||||||
20 | Assembly to enact into law provisions that either clearly | ||||||
21 | prohibit sports betting or that legalize, limit, and | ||||||
22 | control sports betting with strong consumer protections | ||||||
23 | to, among other things, ensure that minors cannot place | ||||||
24 | sports bets and provide problem gamblers access to the help | ||||||
25 | they need. If sports betting became authorized in this | ||||||
26 | State by virtue of United States Supreme Court action and |
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1 | subsequent legislation, the State law should also address | ||||||
2 | any legitimate fiscal needs of this State. If sports | ||||||
3 | betting were to become legal by way of United States | ||||||
4 | Supreme Court action alone, an entirely unregulated sports | ||||||
5 | betting industry would not be in the best interests of the | ||||||
6 | people of this State. | ||||||
7 | Section 10. Definitions. | ||||||
8 | As used in this Act: | ||||||
9 | "Board" means the State agency or entity charged by law | ||||||
10 | with the enforcement of this Act. | ||||||
11 | "Electronic sports betting" means sports betting when a bet | ||||||
12 | is placed by an electronic sports betting patron on the | ||||||
13 | electronic sports betting platform of an electronic sports | ||||||
14 | betting licensee. | ||||||
15 | "Electronic sports betting account" means an account | ||||||
16 | initiated by an electronic sports betting patron and held by an | ||||||
17 | electronic sports betting licensee to facilitate electronic | ||||||
18 | sports betting. | ||||||
19 | "Electronic sports betting licensee" means a sports | ||||||
20 | betting facility licensee licensed by the Board to conduct | ||||||
21 | electronic sports betting. | ||||||
22 | "Electronic sports betting patron" means any natural | ||||||
23 | person who has an electronic sports betting account with an | ||||||
24 | electronic sports betting licensee. | ||||||
25 | "Electronic sports betting platform" means how an |
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1 | electronic sports betting patron accesses an electronic sports | ||||||
2 | betting licensee's services. | ||||||
3 | "Sports betting" means the legal placement of a bet on a | ||||||
4 | professional or collegiate sports activity or event, or | ||||||
5 | international sports competition. | ||||||
6 | "Sports betting adjusted gross receipts" means the total of | ||||||
7 | cash and cash equivalents received from sports betting less the | ||||||
8 | total amount of cash or cash equivalents paid to sports betting | ||||||
9 | facility patrons and electronic sports betting patrons for | ||||||
10 | winning sports betting. | ||||||
11 | "Sports betting facility" means a physical location within | ||||||
12 | this State that is licensed to conduct sports betting. | ||||||
13 | "Sports betting facility licensee" means any entity | ||||||
14 | licensed by the Board to conduct sports betting at a sports | ||||||
15 | betting facility. | ||||||
16 | "Sports betting facility patron" means any natural person | ||||||
17 | who is not a minor and who is not otherwise prohibited from | ||||||
18 | placing a bet at a sports betting facility. | ||||||
19 | Section 15. Board action regarding sports betting. | ||||||
20 | Unless prohibited under federal law and as otherwise provided | ||||||
21 | by State law, the Board may adopt rules which prohibit or | ||||||
22 | authorize sports betting or electronic sports betting by an | ||||||
23 | electronic sports betting patron or sports betting facility | ||||||
24 | patron through an electronic sports betting account on an | ||||||
25 | electronic sports betting platform or other means with an |
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1 | electronic sports betting licensee or sports betting facility | ||||||
2 | licensee. The Board may require reporting of sports betting | ||||||
3 | adjusted gross receipts to it by electronic sports betting | ||||||
4 | licensees or sports betting facility licensees. | ||||||
5 | Section 105. The Criminal Code of 2012 is amended by | ||||||
6 | changing Sections 28-1 and 28-3 as follows:
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7 | (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
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8 | Sec. 28-1. Gambling.
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9 | (a) A person commits gambling when he or she:
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10 | (1) knowingly plays a game of chance or skill for money | ||||||
11 | or other thing of
value, unless excepted in subsection (b) | ||||||
12 | of this Section;
| ||||||
13 | (2) knowingly makes a wager upon the result of any | ||||||
14 | game, contest, or any
political nomination, appointment or | ||||||
15 | election;
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16 | (3) knowingly operates, keeps, owns, uses, purchases, | ||||||
17 | exhibits, rents, sells,
bargains for the sale or lease of, | ||||||
18 | manufactures or distributes any
gambling device;
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19 | (4) contracts to have or give himself or herself or | ||||||
20 | another the option to buy
or sell, or contracts to buy or | ||||||
21 | sell, at a future time, any grain or
other commodity | ||||||
22 | whatsoever, or any stock or security of any company,
where | ||||||
23 | it is at the time of making such contract intended by both | ||||||
24 | parties
thereto that the contract to buy or sell, or the |
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1 | option, whenever
exercised, or the contract resulting | ||||||
2 | therefrom, shall be settled, not by
the receipt or delivery | ||||||
3 | of such property, but by the payment only of
differences in | ||||||
4 | prices thereof; however, the issuance, purchase, sale,
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5 | exercise, endorsement or guarantee, by or through a person | ||||||
6 | registered
with the Secretary of State pursuant to Section | ||||||
7 | 8 of the Illinois
Securities Law of 1953, or by or through | ||||||
8 | a person exempt from such
registration under said Section | ||||||
9 | 8, of a put, call, or other option to
buy or sell | ||||||
10 | securities which have been registered with the Secretary of
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11 | State or which are exempt from such registration under | ||||||
12 | Section 3 of the
Illinois Securities Law of 1953 is not | ||||||
13 | gambling within the meaning of
this paragraph (4);
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14 | (5) knowingly owns or possesses any book, instrument or | ||||||
15 | apparatus by
means of which bets or wagers have been, or | ||||||
16 | are, recorded or registered,
or knowingly possesses any | ||||||
17 | money which he has received in the course of
a bet or | ||||||
18 | wager;
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19 | (6) knowingly sells pools upon the result of any game | ||||||
20 | or contest of skill or
chance, political nomination, | ||||||
21 | appointment or election;
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22 | (7) knowingly sets up or promotes any lottery or sells, | ||||||
23 | offers to sell or
transfers any ticket or share for any | ||||||
24 | lottery;
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25 | (8) knowingly sets up or promotes any policy game or | ||||||
26 | sells, offers to sell or
knowingly possesses or transfers |
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1 | any policy ticket, slip, record,
document or other similar | ||||||
2 | device;
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3 | (9) knowingly drafts, prints or publishes any lottery | ||||||
4 | ticket or share,
or any policy ticket, slip, record, | ||||||
5 | document or similar device, except for
such activity | ||||||
6 | related to lotteries, bingo games and raffles authorized by
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7 | and conducted in accordance with the laws of Illinois or | ||||||
8 | any other state or
foreign government;
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9 | (10) knowingly advertises any lottery or policy game, | ||||||
10 | except for such
activity related to lotteries, bingo games | ||||||
11 | and raffles authorized by and
conducted in accordance with | ||||||
12 | the laws of Illinois or any other state;
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13 | (11) knowingly transmits information as to wagers, | ||||||
14 | betting odds, or
changes in betting odds by telephone, | ||||||
15 | telegraph, radio, semaphore or
similar means; or knowingly | ||||||
16 | installs or maintains equipment for the
transmission or | ||||||
17 | receipt of such information; except that nothing in this
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18 | subdivision (11) prohibits transmission or receipt of such | ||||||
19 | information
for use in news reporting of sporting events or | ||||||
20 | contests; or
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21 | (12) knowingly establishes, maintains, or operates an | ||||||
22 | Internet site that
permits a person to play a game of
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23 | chance or skill for money or other thing of value by means | ||||||
24 | of the Internet or
to make a wager upon the
result of any | ||||||
25 | game, contest, political nomination, appointment, or
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26 | election by means of the Internet. This item (12) does not |
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1 | apply to activities referenced in items (6) and (6.1) of | ||||||
2 | subsection (b) of this Section.
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3 | (b) Participants in any of the following activities shall | ||||||
4 | not be
convicted of gambling:
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5 | (1) Agreements to compensate for loss caused by the | ||||||
6 | happening of
chance including without limitation contracts | ||||||
7 | of indemnity or guaranty
and life or health or accident | ||||||
8 | insurance.
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9 | (2) Offers of prizes, award or compensation to the | ||||||
10 | actual
contestants in any bona fide contest for the | ||||||
11 | determination of skill,
speed, strength or endurance or to | ||||||
12 | the owners of animals or vehicles
entered in such contest.
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13 | (3) Pari-mutuel betting as authorized by the law of | ||||||
14 | this State.
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15 | (4) Manufacture of gambling devices, including the | ||||||
16 | acquisition of
essential parts therefor and the assembly | ||||||
17 | thereof, for transportation in
interstate or foreign | ||||||
18 | commerce to any place outside this State when such
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19 | transportation is not prohibited by any applicable Federal | ||||||
20 | law; or the
manufacture, distribution, or possession of | ||||||
21 | video gaming terminals, as
defined in the Video Gaming Act, | ||||||
22 | by manufacturers, distributors, and
terminal operators | ||||||
23 | licensed to do so under the Video Gaming Act.
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24 | (5) The game commonly known as "bingo", when conducted | ||||||
25 | in accordance
with the Bingo License and Tax Act.
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26 | (6) Lotteries when conducted by the State of Illinois |
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1 | in accordance
with the Illinois Lottery Law. This exemption | ||||||
2 | includes any activity conducted by the Department of | ||||||
3 | Revenue to sell lottery tickets pursuant to the provisions | ||||||
4 | of the Illinois Lottery Law and its rules.
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5 | (6.1) The purchase of lottery tickets through the | ||||||
6 | Internet for a lottery conducted by the State of Illinois | ||||||
7 | under the program established in Section 7.12 of the | ||||||
8 | Illinois Lottery Law.
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9 | (7) Possession of an antique slot machine that is | ||||||
10 | neither used nor
intended to be used in the operation or | ||||||
11 | promotion of any unlawful
gambling activity or enterprise. | ||||||
12 | For the purpose of this subparagraph
(b)(7), an antique | ||||||
13 | slot machine is one manufactured 25 years ago or earlier.
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14 | (8) Raffles and poker runs when conducted in accordance | ||||||
15 | with the Raffles and Poker Runs Act.
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16 | (9) Charitable games when conducted in accordance with | ||||||
17 | the Charitable
Games Act.
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18 | (10) Pull tabs and jar games when conducted under the | ||||||
19 | Illinois Pull
Tabs and Jar Games Act.
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20 | (11) Gambling games conducted on riverboats when
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21 | authorized by the Riverboat Gambling Act.
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22 | (12) Video gaming terminal games at a licensed | ||||||
23 | establishment, licensed truck stop establishment,
licensed
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24 | fraternal establishment, or licensed veterans | ||||||
25 | establishment when
conducted in accordance with the Video | ||||||
26 | Gaming Act. |
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1 | (13) Games of skill or chance where money or other | ||||||
2 | things of value can be won but no payment or purchase is | ||||||
3 | required to participate. | ||||||
4 | (14) Savings promotion raffles authorized under | ||||||
5 | Section 5g of the Illinois Banking Act, Section 7008 of the | ||||||
6 | Savings Bank Act, Section 42.7 of the Illinois Credit Union | ||||||
7 | Act, Section 5136B of the National Bank Act (12 U.S.C. | ||||||
8 | 25a), or Section 4 of the Home Owners' Loan Act (12 U.S.C. | ||||||
9 | 1463). | ||||||
10 | (15) Authorized activities under the Sports Betting | ||||||
11 | Consumer Protection Act or rules adopted under that Act. | ||||||
12 | (c) Sentence.
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13 | Gambling is a
Class A misdemeanor. A second or
subsequent | ||||||
14 | conviction under subsections (a)(3) through (a)(12),
is a Class | ||||||
15 | 4 felony.
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16 | (d) Circumstantial evidence.
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17 | In prosecutions under
this
Section circumstantial evidence | ||||||
18 | shall have the same validity and weight as
in any criminal | ||||||
19 | prosecution.
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20 | (Source: P.A. 98-644, eff. 6-10-14; 99-149, eff. 1-1-16 .)
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21 | (720 ILCS 5/28-3)
(from Ch. 38, par. 28-3)
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22 | Sec. 28-3. Keeping a Gambling Place. A "gambling place" is | ||||||
23 | any real
estate, vehicle, boat or any other property whatsoever | ||||||
24 | used for the
purposes of gambling other than gambling conducted | ||||||
25 | in the manner authorized
by the Riverboat Gambling Act , Sports |
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1 | Betting Consumer Protection Act, or the Video Gaming Act. Any | ||||||
2 | person who
knowingly permits any premises
or property owned or | ||||||
3 | occupied by him or under his control to be used as a
gambling | ||||||
4 | place commits a Class A misdemeanor. Each subsequent offense is | ||||||
5 | a
Class 4 felony. When any premises is determined by the | ||||||
6 | circuit court to be
a gambling place:
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7 | (a) Such premises is a public nuisance and may be proceeded | ||||||
8 | against as such,
and
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9 | (b) All licenses, permits or certificates issued by the | ||||||
10 | State of
Illinois or any subdivision or public agency thereof | ||||||
11 | authorizing the
serving of food or liquor on such premises | ||||||
12 | shall be void; and no license,
permit or certificate so | ||||||
13 | cancelled shall be reissued for such premises for
a period of | ||||||
14 | 60 days thereafter; nor shall any person convicted of keeping a
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15 | gambling place be reissued such license
for one year from his | ||||||
16 | conviction and, after a second conviction of keeping
a gambling | ||||||
17 | place, any such person shall not be reissued such license, and
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18 | (c) Such premises of any person who knowingly permits | ||||||
19 | thereon a
violation of any Section of this Article shall be | ||||||
20 | held liable for, and may
be sold to pay any unsatisfied | ||||||
21 | judgment that may be recovered and any
unsatisfied fine that | ||||||
22 | may be levied under any Section of this Article.
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23 | (Source: P.A. 96-34, eff. 7-13-09.)
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